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Envestio Review – P2P Investing

One of the most interesting P2P investing platforms in the past few months has been Envestio (please note that by clicking this link you will get an additional 0.5% cashback on your deposits for 270 days and you’ll also help me run this blog).

This is an Estonian P2P platform that offers investors among the highest interest rates I’ve seen (most projects range from 18% to 22%) with maturities usually from 6 months to a year.

Most projects consist of tranches of bridge financing for various business projects: some of the projects I’ve seen are related to energy (wind farms), crypto mining, timber mills, fruit street markets,  or increasing capacity for existing businesses such as fish markets or wood-pallet makers.

Envestio also offers an interesting buyback guarantee: you can sell back your investment to Envestio at any time for a 5% fee (so, for example, if you invested 1000E you can sell it back for 950E), and you get to keep all the accrued interest and payments on top of that.

An important point that I haven’t seen mentioned in other blogs is that Envestio actually does also have a default buyback guarantee: in case any of the projects default (defined as payments overdue for more than 60 days), Envestio will immediately refund 80% of the investment, and then let you choose if you want to get another 10% immediately, or try to get the full remaining 20% by waiting for legal proceedings to work out.

This means you have a default protection that ranges from 90% to 100% depending on your choice.

Envestio in my opinion has an interesting combination of short term loans, very high interest rates, and good buyback protection, which makes is a valuable addition for an investor.

In addition, it is open to international investors from overseas (not only from Europe), so it might be interesting for our non-european readers.

I didn’t know much about bridge financing before (which is what Envestio does), but it makes sense from a business standpoint: small businesses that need capital immediately but can’t get it from a bank in such a short amount of time can accept to pay high interest rates for a few months, and then refinance with lower rates with a longer term date.

Envestio basically takes advantage of those short-term, high-interest rate bridge loans and packages them for individual investors.

Envestio Pros:

  • Default guarantee that covers at least 90% of your investment
  • Very high interest rates
  • Maturities are relatively short and allow for a controlled liquidity risk

Envestio Cons:

  • The short maturities expose you to re-investment risk
  • The platform is younger and relatively riskier than larger ones like Mintos

How it looks like:

The platform has a good UI and it feels easy and fast, upon entering you are greeted with this dashboard that’s pretty intuitive:

Envestio’s dashboard feels intuitive and tidy

Upon clicking on “investments” you can choose from a list of the current investments open for funding (there aren’t any at the time of this writing but they regularly post new investments every week).

They also have a “my investments” page that neatly shows where you are currently invested and the payments you will be receiving:

Envestio’s “my investments” page

One point that I would stress is to make sure you are verified before investing your money: you can not withdraw funds unless you are verified so it just makes sense to do so before sending your funds.

Overall, my experience with Envestio has been very good so far, with no problem encountered at any stage of the verification, funding and withdrawal phases.

If you’re interested in maximizing your profits, you can join through my link and get an additional 0,5% of your invested money as cashback for the first 270 days.

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